Suppose the CPI was 108 in 1967, and suppose one must spend $936 today to obtain the same basket of goods and services that could be bought for $200 in 1967. Then today’s CPI is 131.08. 397.44. 505.44. 116.67.

Suppose the CPI was 108 in 1967, and suppose one must spend $936 today to obtain the same basket of goods and services that could be bought for $200 in 1967. Then today’s CPI is

131.08.

397.44.

505.44.

116.67.

 

 

Answer:

505.44

Working Note:

Today’s CPI = (CPI in 1967/Price of basket in 1967)*Price of basket today

Today’s CPI = (108/200)*936

Today’s CPI = 505.44

Asked on February 15, 2018 in economics.
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